Osmosis OSMO + the biggest decentralized change on Cosmos, and the lending protocol UX Chain (previously Umee) have proposed a merger with one another – signaling main consolidation within the Cosmos ecosystem. As soon as permitted, this merger might see the mixing of UX Chain’s credit score logic and algorithms with Osmosis’ DEX, making a complete DeFi hub.
This proposal, a joint effort between staff from each Osmosis and UX Chain, included a strategic plan for the proposed merger. The method will unfold in steps, beginning with integrating the UX Chain code base into the Osmosis Chain. This integration goals to merge the capabilities of each platforms. The anticipated outcomes of this primary step embrace combining the shared complete worth locked throughout the 2 networks. On this first step, each chains will proceed to commerce their respective tokens – the Osmosis token and the UX token – individually.
Then there shall be the potential for a step associated to combining the 2 tokens, together with a attainable token change or migration. In line with the proposal, this transfer would result in the creation of a unified token representing each networks. The token swap configurations shall be decided based mostly on neighborhood administration.
“Every chain could have a separate governance vote from every blockchain community. The neighborhood board will handle the processes for every community individually to succeed in consensus on the tip aim of making the DeFi hub,” Brent Xu, co-founder of UX, instructed me Chain to The Block an announcement.
Umee and Osmosis proposed to unite capabilities
This proposed merger additionally goals to allow UX Chain so as to add worth to Osmosis’ mesh safety – the community’s capacity to safe different blockchain tasks – by doubtlessly leveraging the mixed experience or by merging validator units from each networks. By leveraging one another, UX Chain and Osmosis can discover the potential for creating superior liquidations, native margin buying and selling and MEV markets.
“This proposal to merge the Umee UX DeFi expertise with the Osmosis Chain would allow some actually highly effective new options and performance for our customers – and we’re excited to proceed our partnership with UX Chain with what the neighborhood considers the very best,” says Osmosis co. founder Sunny Aggarwal stated.
The event groups behind each tasks have beforehand secured vital funding. UX Chain raised $32 million via a CoinList coin providing in 2021, preceded by a $6.3 million seed spherical led by Polychain Capital. The identical yr, Osmosis secured $21 million in a token gross sales spherical, with Paradigm main the funding.